Swiss Foundations and Federations Against Watch Piracy Miss The Point
Why don't they sell? Again, two reasons. Because there is perhaps not enough demand, and second, because the buyer has no idea what the reserve price is. Most important bidding occurs in the final minutes of an auction. A time when buyers decide how much the item is worth it to them, and bid accordingly hoping they don't get out-bid. The system rewards quick decision making, and it is only the rare bidder will bids so high as to alienate other bidders. The idea is to pay enough, but not too much. Thus auctions with a reserve price don't sell, because no one ever reaches the reserve price in the final moments of an auction. See the above image as an example. Here an auction ended without the reserve price being met. You can see that the auction enjoyed 8 bids, likely more if the auction reserve would have been met. There is obvious interest in this item, but the reserve price was not met, the item did not sell, and you have a frustrated seller, and frustrated buyers.